Risk that Entrepreneurs Face
The specific areas of risk that entrepreneurs’ faces are as follows:
- . Financial risk—In most new ventures the individual puts a significant portion of his savings or other resources at stake.
- Career risk—A question frequently raised by would-be entrepreneurs is whether they will be able to find a job or go back to their old jobs if their venture should fail.
- Family and social risk—Entrepreneurs expose their families to the risk of an incomplete family experience and the possibility of permanent scars.
- Psychic risk—The greatest risk may be to the well-being of the entrepreneur.
- Describe how risk taking is an important element of entrepreneurship.